Chapter 263: Investing in Rongye Corporation

Lunch was provided by the London Chinatown Chinese Business Association, and all the guests enjoyed a delicious meal.

After lunch, the formalities for the establishment of the Chinese Business Association were complete, and everyone could go back to their own affairs.

When Xia Yu followed Wu Hongyi to Fenghuang Lou, Ye Huanrong arrived shortly afterward. His purpose was clear: he wanted to discuss something with Wu Hongyi.

"Young Master Wu, I'm bothering you again," Ye Huanrong said with a hearty laugh. He then nodded towards Xia Yu and greeted him, "Mr. Xia, good afternoon!"

"Hello, Mr. Ye!" Xia Yu responded with a smile.

"Mr. Ye, what brings you here this time?" After everyone was seated, Wu Hongyi asked with a smile, raising an eyebrow as he looked at Ye Huanrong, waiting for him to explain.

"Young Master Wu, I'm here with a request. Due to Rongye Corporation's rapid expansion, we've encountered some cash flow problems and urgently need funds. I was hoping to secure a loan through Huasheng Bank," Ye Huanrong said, glancing at Xia Yu but not hiding his intent, then sighed and explained his situation.

Wu Hongyi nodded in understanding but did not immediately agree. Instead, he began to consider the situation.

Rongye Corporation had indeed been growing rapidly recently, with substantial funds invested in warehouse and trading center construction. Although these facilities were fundamental to Rongye, the large amount of capital tied up in them made liquidity a challenge.

Ye Huanrong must be in a desperate situation; otherwise, he wouldn't have bypassed regular procedures and sought a shortcut through him. It seemed he couldn't afford to wait for the standard process.

Moreover, securing a bank loan in the UK was difficult for Chinese businesses. With few and small Chinese banks, getting a loan was challenging.

It was reasonable for Ye Huanrong to approach Wu Hongyi. Although Wu Hongyi had previously been indifferent to the Wu family's businesses, besides Fenghuang Lou, the most influential business within the Wu family that Wu Hongyi could impact was Huasheng Bank.

Huasheng Bank, named after Wu Hongyi's father, Wu Huasheng, was established by his father. Despite being a relatively new bank, having been founded just over a decade ago, it had grown rapidly and now boasted fourteen branches across the UK. Not only did Chinese merchants prefer dealing with Huasheng Bank, but even some Britons appreciated the bank's emphasis on integrity.

Although nearly all Huasheng Bank's shares were held by the Wu family and Wu Hongyi personally owned only 2%, it was still his father's creation. The current president of the bank was his father's former classmate and trusted assistant, making Wu Hongyi's influence significant. Therefore, if Wu Hongyi spoke up, securing a loan for Rongye Corporation could be swift.

Wu Hongyi asked, "Mr. Ye, how much funding do you need?"

"Just five hundred thousand pounds will suffice. With this, I can get through the next two months and stabilize," Ye Huanrong said, relieved to see that Wu Hongyi was not refusing. He quickly added, "Thank you in advance."

Upon hearing the amount, Wu Hongyi assessed Rongye Corporation's specific assets and nodded, "I can act as an intermediary, but I can't guarantee the specifics."

"Thank you, Young Master Wu," Ye Huanrong said joyfully, lifting his teacup in a toast to Wu Hongyi, expressing his gratitude.

Although Wu Hongyi didn't make any guarantees, Ye Huanrong was optimistic, believing that Wu Hongyi's influence would be effective. He had made inquiries before approaching Wu Hongyi.

As expected, after Wu Hongyi made a call, Ye Huanrong secured the loan that afternoon. The five hundred thousand pounds were deposited into his account, and he finally breathed a sigh of relief.

To show his gratitude, Ye Huanrong insisted on treating Wu Hongyi to dinner, and he extended the invitation to Xia Yu as well. Unable to refuse, Xia Yu joined Wu Hongyi.

During the dinner, as drinks flowed and conversation moved, the topic inevitably shifted to Rongye Corporation.

"Mr. Ye, with your funding issues resolved, Rongye Corporation will continue its rapid progress. After becoming the largest in Birmingham, it will surely claim the position of the largest Chinese food supermarket and wholesale center in the UK," Xia Yu said with confidence, making Wu Hongyi raise an eyebrow. It was the first time he had heard Xia Yu speak so highly and with such firmness about someone. He glanced at Xia Yu, pondering his true thoughts.

Ye Huanrong was taken aback by such high praise and quickly waved his hand in modesty, "Mr. Xia, you overestimate me. I don't have such capabilities."

Despite his surprise, Ye Huanrong was pleased. Receiving such high praise for his proud and hard-fought business was a joy anyone would relish.

However, Ye Huanrong was not carried away. Although he had achieved the top position in Birmingham, Rongye Corporation was still only barely in the top ten in the UK. He wouldn't underestimate his competitors.

He had set a grand goal to become number one in the UK when expanding beyond Birmingham, but that was a long-term objective. His immediate priority was to establish a strong foothold in London.

Hearing Xia Yu's belief that he could become number one in the UK was exciting, but considering the current situation, Ye Huanrong quickly regained his composure.

He had not forgotten that his cash flow was still tight. Even with the loan of five hundred thousand pounds, it was only a temporary fix. To continue growing, he needed substantial funds, whether through self-financing or external funding. Excessive loans meant a significant portion of annual profits went to the bank, and any risk could be disastrous.

In the competitive market, it was crucial to act quickly and seize opportunities. As a grassroots entrepreneur, he needed support to ascend to the top.

While Xia Yu had the capability, he had just arrived in the UK, and even as a potential shareholder in Rongye Corporation, he couldn't take over his business.

Having money reduced risks. Xia Yu's substantial resources and close relationship with Wu Hongyi made the situation appear promising.

Accepting Xia Yu's investment could increase the chances of becoming the largest in the UK in his field. Even expanding to the European market, as Xia Yu suggested, was a possibility.

Thinking this, Ye Huanrong's enthusiasm grew.

He looked at Wu Hongyi, who was silently observing, and then at Xia Yu, who was smiling at him. Finally, he nodded decisively and said, "Mr. Xia, thank you for your trust. I'd like to know the specific terms of the investment."

Seeing Ye Huanrong's agreement, Xia Yu smiled and arranged to discuss the details the next day. Ye Huanrong agreed readily.

The reason for postponing was that the current occasion was not suitable for detailed discussions, and neither side was prepared.

Moreover, Xia Yu needed to secure the funds for the investment first.

Checking his watch, Xia Yu's lips curved into a smile as he thought, "Considering the time difference, the Argentina vs. Peru match should have started…"